Peggy Revell
With millions of dollars in tax revenue on the line, the Town of Fort Frances has hired outside expertise to deal with the local mill’s appeal to the Assessment Review Board.
“[It’s] to protect the interest of the town,” said Mayor Roy Avis as council passed a bylaw at Monday night’s meeting to approve a service agreement between the town and Municipal Tax Equity Consultants Inc. and MTE Paralegal Corp.
The move came after AbitibiBowater (AbiBow) Canada Inc. filed an appeal in May for its mill property here in Fort Frances.
AbiBow’s appeal covers the years 2009, 2010, and 2011, with the company looking to have the assessment lowered from $28,260,000 to no more than $15,010,000.
If the appeal is successful, the town would be required to make a retroactive payment of roughly $2.2 million for the municipal portion of the adjustment to AbiBow for the years 2009-11.
As well, in following years, the town would see tax revenues reduced by roughly $800,000 on an annual basis.
To keep town services at status quo, this would represent a 8.4401 percent residential tax increase.
“When you get an appeal in the amount of money that [AbiBow] is for, municipalities are not equipped to handle that,” Mayor Avis warned.
“We don’t have the expertise on staff, so therefore we have to go outside for expertise—and that’s what we’re doing,” he explained.
The report approved by council Monday night, alongside the bylaw for the service agreement, noted that, historically municipalities have not played a role in the majority of assessment appeals in Ontario.
But this is gradually changing, the report noted, as municipalities have become more actively involved in the assessment appeal process—and to retain an expert to present their own evidence in an effort to protect tax revenues.
There are reassessments which go on all the time in town, Mayor Avis noted, such as if a building comes down or if a landowner feels their appraisal is not correct.
“But if you’re into a situation where you’re running into one like Abitibi, that goes back to 2009, and it’s for the amount of money it is, we want to protect our interests,” he stressed.
The appeal is set to be heard in September.
Also at Monday night’s meeting, council:
•approved the April, 2011 Drinking Water Systems Monthly Summary report;
•approved a bylaw to deem Lots 21 and 22 on Plan SM-48 (1108 Second St. E.) not to be lots on a registered plan of subdivision for the purpose of 50 (3) of the Planning Act;
•approved a bylaw to amend Zoning By-Law 08/98 (505 McIrvine Rd.) to allow for a cardlock fuel retailing depot at the site;
•approved a bylaw to authorize the signing of an employment agreement with James Marengere as Sunny Cove Camp caretaker;
•approved a bylaw to authorize the signing of an agreement with Fort Frances Professional Fire Fighters Association and Joseph Bobcyznski;
•approved a bylaw to approve an agreement with the minister of transportation for financing under Dedicated Gas Tax Funds for Public Transportation Program;
•approved a report to authorize a contribution up to $500 for the July 2 International Tug-of-War event;
•received a request from North Air Services to amend the current taxi bylaw concerning car colour, safeties, vehicle licence, and driver’s taxi licence, and referred the request to the Planning and Development executive committee for its recommendation;
•received a request from the Township of Emo re: input on its proposed resolution on banning plastic bags and referred it to the Operations and Facilities executive committee for its recommendation; and
•approved a request from the Ontario Family Fishing Weekend steering committee to proclaim July 2-10 as “Ontario Family Fishing Week” in Fort Frances.
